Friday, January 22, 2010

Give to Haiti But Be Aware of Scams

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

In wake of the recent tragedy in the Caribbean, scams are on the rise involving donations to help the victims of Haiti. Increasing numbers of people are looking for a charitable organization or relief agency to donate their funds and time. Unfortunately, this is an opportune time for thieves to take advantage of innocent victims looking to help their fellow man. Be suspicious of individuals representing themselves as victims and asking for donations via e-mail and social networking sites.

Viruses may be present in e-mails claiming to show you pictures of the disaster areas in attached files. Be cautious when you enter your credit/debit card information through the internet. Make sure it is a secure line. Finding out exactly where donations will be going and what type of assistance the organization is providing can save you from becoming a victim of fraud. Fraudulent charities will likely emerge during this difficult time.

Whenever there is a natural disaster, home or abroad, two major things tend to happen. One, Americans are eager to donate their time, money, and resources. Two, a number of poorly-run or fraudulent charitable organizations spring up overnight. The Federal Bureau of Investigation (FBI) is asking people not give any personal or financial information to anyone who asks for donations. This may make you vulnerable to identity theft or worse. On a lighter note, to ensure your donation is tax deductible, your donations should be made to a U.S. based charitable organization who has a 501(c)(3) status. This means the organization is a tax-exempt non-profit.

There are several reputable organizations and groups willing to accept donations that will go directly to the needs of the victims: UNICEF, The American Red Cross, Yele Haiti, and the Haiti Earthquake Relief Mission, just to name a few legitimate ones. Take the time to research and verify each organization, or person, asking for donations as I know a few people are looking for somewhere to give. Please remember to be safe about it.

Thursday, January 21, 2010

What Tax Credits Are Your Eligible for This Year?

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

If you have been following this blog over the past few months, much attention has been given to the homebuyer tax credit. In addition to this credit, there are many other changes launching this tax season. The American Recovery and Investment Act of 2009 is a law that affects tax payers both on an individual and a business scale. This legislation is part of an economic stimulus bill designed to expand tax cuts and other social welfare programs. You can find out more information about how this money is being spent by checking out Recovery.gov.

Concerning taxes, many credits were either implemented or expanded and will affect your tax rebate this year. For instance, you may be eligible to receive up to $5,657 back for the Earned Income Tax Credit (EITC), depending on your filing status and how many children you have.If you are currently receiving unemployment benefits, or did at some point during 2009, you will not be taxed for the first $2,400 of those benefits this year.

Another way tax credits have changed is by expanding the requirements for eligibility. This year, more students will be eligible for the American Opportunity Credit for college expenses. Tax credits are also available for things such as child care expenses or the sales tax of a new vehicle.

Make sure that you get all the refunds you are eligible for this tax season. Beware of losing money by utilizing expensive tax preparation services or by taking out a Refund Anticipation Loan (RAL). File your federal taxes electronically using the Free File system made available through the Internal Revenue Service (IRS).

In Baltimore, there are free tax preparation services available if you are a family making less than $49,000 or an individual making less than $25,000 in 2009. NHS of Baltimore is one of the sites providing these free services through a partnership with the Baltimore CASH Campaign. To schedule an appointment at our site, call 410-327-1200. To view a list of other free tax sites around Baltimore, click here .

Friday, January 15, 2010

Tax Season Scams In Full Swing

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

Tax season is quickly coming upon us and scammers are already lining up to take advantage. Last week, I received an e-mail that appeared to be from the Internal Revenue Service (IRS)- the contents of the e-mail included a believable e-mail address, office@2010-irs.gov, a calculation of my fiscal tax year activity stating my eligibility to receive a tax refund, complete with an amount owed and a link to a PDF file requesting some personal information required for tax refunds. It was a scam. The number one tip-off being e-mail address listed above.

“The IRS does not discuss tax account matters with taxpayers by e-mail,” nor does it, “request detailed personal information through e-mail, send e-mail requesting your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts,” as clearly stated on their website. Furthermore, all IRS.gov web page addresses begin with, http://www.irs.gov/.

A lot of people may be tempted to submit personal information as we struggle through this recession. In order to protect yourselves from predatory scammers, always double check that the information you are receiving is valid and from reputable companies. Identity theft is on the rise at an alarming rate. Just a few years’ ago, scammers would solicit a person’s personal information over the phone, through the trash, and through mailings. Today, scammers have learned to manipulate, and infiltrate the internet and e-mail systems.

Armed with a victim’s name and social security number, scammers can rob your financial accounts, run up charges on your credit cards, and apply for new loans, benefits, and other consumer services. If you suspect any fraudulent activity involving misuse of the IRS name, logo, or other properties, please report it directly to the IRS by forwarding the e-mail as is to, phishing@irs.gov. You can also call the Treasury Inspector General for Tax Administration (TIGTA) toll-free at 1-800-366-4484 to report these scams.

To read more about what you can do to avoid and report scams, click here.

Thursday, January 14, 2010

Artist Tells Stories of Recession Hardships in a Whole New Way

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Most of the information we hear about the recession is in numbers and percentages. While statistics can be useful, they are not always practical. For instance, we may read that employment rates are improving by some percentage but often cannot relate to the numbers. And it can be discouraging to see numbers about how things are picking up when we may not feel that way ourselves. Statistics can be impersonal, disconnected from every day life, and even misleading.

In contrast to rates and percentages, one woman is taking the initiative to bring personal stories of hardship to a whole new level. Lori Nelson began her “Souvenirs of the Recession” project by documenting economic events through carving pieces of wood. At one of her art shows, her “Recession plaques” inspired viewers to relate their own experiences with the economic crisis. Lori now invites individuals to share their stories of personal hardship which she recreates in art pieces and broadcasts on her website. The whole project was inspired by Studs Terkel’s series of interviews, “Hard Times”, which documented experiences of individuals living through the Great Depression.

Far more memorable than statistics, personal stories of hardship can teach us a lot. Nelson says that she is “grateful that Terkel had gotten people to open up to him so that we now can try to understand the intricacies of the Great Depression and learn from and perhaps even relate to them.” Indeed, many people are relating to one another through similar difficulties. Hearing about the hardships of others, though sad, can be encouraging in that it displays to us that we are not alone in these trying times. Part of what Lori wishes to accomplish through her artwork is to diminish the shame that so many people feel in an economic downturn. She has “noticed that when people hear others’ personal stories, they are more open about their own experiences.”

If you would like to share your recession story for the project, contact Lori Nelson.

Friday, January 8, 2010

Borrow and Save Loan Program Helping People Bridge the Financial Gap

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Back in September, Neighborhood Housing Services of Baltimore (NHSB) and the Baltimore Alliance for Economic Inclusion (BAEI) unveiled the Borrow and Save Loan program. The program allows individuals to borrow anywhere from $300 to $1000 which can be repaid over the course of a year, with no pre-payment penalties and borrowers must take a financial fitness class at NHSB and contribute a minimum of $5 per month to a savings account that is matched upon repayment of the loan.

This method of lending is meant to combat “Payday” loans which have extremely high interest rates and can lead to continuous cycles of debt. In Maryland, vendors can charge interest rates up to 36% for so called “cash advances” and “pay-day” loans- the interest rate for the Borrow and Save program is 7.99%. Program participants will be able to use this loan to improve their credit score while learning healthy financial principles. Thus far, the program has provided 79 low-to-moderate income families and individuals with more than $58,100 in loan money. Many of these participants have used the loan money to help them catch up on bills, pay utilities, or make repairs on their homes.

If you or someone you know is in need of a small dollar loan, consider applying for NHS of Baltimore’s Borrow and Save program. As a nonprofit, we’ll get you the money you need to bridge the financial gap in your life, while providing you with financial education for the future. Applicants will be considered on a first-come, first-serve basis.

Since this program is still in it’s pilot stage, only individuals residing within East Baltimore zip codes (21202, 21205, 21213, 21224, and 21231) are eligible. Call NHSB at 410-327-1200 for more information or to apply. Click here to download the application online.